Portugal's biggest retailer, Sonae, expects the domestic market to grow at one of the fastest rates in Europe until 2022 and plans to open more local supermarkets and boost its online sales to tap this growth.
Sonae, which runs 173 Continente hypermarkets and large supermarkets, Worten consumer electronics stores and Sportzone stores, said in a presentation that Portugal's grocery retail sales were forecast to grow 2.9 percent on average a year to 2022.
This is set to outstrip sales growth of 2.2 percent in Europe as a whole.
Portugal Recovery
Portugal's economy, which emerged from a deep crisis in 2014, last year grew at its strongest rate since 2000 and the expansion is set to continue in the next few years, if at a slightly lower rate, the government estimates.
Individually, only neighbouring Spain, where Sonae operates various stores and runs shopping centres, is expected to have higher retail sales growth, of 3.1 percent a year.
"The Portuguese grocery retail market is relatively under-penetrated and is expected to be one of the fastest growing markets in Europe," it said, adding that Sonae saw room for expansion in 'proximity' retailing, which can include smaller local supermarkets, convenience stores and online retail.
Sonae already runs almost 400 such smaller supermarkets and stores.
Sonae, which is a holding company, is analysing a potential initial public offering for its retail division Sonae MC, in which it wants to maintain a majority shareholding.
Environmental Leader
Elsewhere, Sonae has said that it plans to support the Climate Change Leadership Porto 2018 summit, dedicated to climate change, which will welcome former US president Barack Obama and many other leading politicians and industry personnel to Portugal next month.
'This initiative [...] fits in the companies’ talent management policy, as it allows the employees to access enriching training opportunities, which will contribute to strengthen their leadership skills and make them aware of one of the most important subjects of our time,' Sonae said in a statement. 'On the other hand, it is in line with one of Sonae’s central values, sustainability.'
The event takes place on 6 July.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
